U.S. President Donald Trump made an unexpected appearance in tariff discussions with Japan, and while markets were initially on edge, they ultimately took a collective breath of relief as the talks didn’t lead to disaster.
Japan, as the first major trading partner to engage directly with the U.S., is seen as a key test case for the more than 70 countries reportedly seeking better terms following Trump’s recent tariff announcements, which were later put on hold.
Trump described the talks with Japan’s lead negotiator, Ryosei Akazawa, as showing “big progress,” though Akazawa offered few specifics in his own remarks to the press. He did, however, clarify that currency exchange was not a topic of discussion during the Washington talks.
In early market movements, Nasdaq futures rose 0.6%, indicating a rebound after Wednesday’s sharp 3% drop. Meanwhile, EUROSTOXX 50 futures fell 0.3%, pointing to a potential third consecutive decline for the broad European index.
The U.S. dollar strengthened slightly against both the euro and the yen after the trade talks, although it remains on track for its fourth straight weekly loss.
Safe-haven assets saw a surge, with gold reaching an all-time high of $3,357.40 per ounce in early Asian trading. U.S. Treasuries, typically a defensive asset, remained steady in Tokyo, with yields showing little movement.
Over in Frankfurt, the European Central Bank is widely expected to cut interest rates for the seventh time this year, aiming to support an economy increasingly challenged by the uncertainty surrounding Trump’s tariffs.
On the corporate front, today is a relatively quiet earnings day ahead of the Easter weekend. British supermarket chain Sainsbury’s (SBRY.L) will release its annual results, with eyes on whether the company will follow industry giant Tesco (TSCO.L) in projecting a decline in profits this year.
Chip stocks will again be in focus after a rough session on Wednesday, following a warning from ASML (ASML.AS). Investors will be looking closely at the earnings forecast from semiconductor giant TSMC (2330.TW) to gauge the overall health of the sector.
REF: REUTERS
